This paper points out a potential TJCA loophole allowing a reduction in aggregate foreign cash subject to the 15.5% rate unless Treasury takes steps to implement an anti-abuse rule. If Treasury does not act, aggressive taxpayers may be rewarded and cautious taxpayers may have incentives to make second-best uses of their offshore cash.

This potential loophole can have material revenue consequences and is an example of the costs of rushed legislative consideration of tax legislation without adequate time to review and analyze bill text.